Greatland Gold teams up with Rio Tinto

Greatland Gold will partner with Rio Tinto to broaden exploration efforts close to its Havieron flagship while locking in support for a $220 million debt commitment ahead of studies at the project. 

The emerging explorer and mining giant entered a farm-in and joint venture arrangement in a bid to expedite exploration efforts within Western Australia’s Paterson Province near the Havieron gold-copper project.

Greatland owns 30 per cent of the Havieron project with operator and joint venture partner Newcrest Mining.

Discovered by the company in 2018, Havieron is the company’s lead asset and is 45 kilometres from Newcrest’s Telfer mine.

Announcing the new exploration venture this morning, Greatland managing director and former Northern Star chief financial officer Shaun Day touted potential similarities in the targeted tenements with that of Havieron and Telfer.

"The Paterson South Project tenement package is an outstanding opportunity with a number of high priority, highly prospective and heritage cleared drill targets,” Mr Day said.

“These targets include underexplored anomalies which the Company considers to be the closest to a Havieron lookalike within the Paterson Province.

“Other opportunities include historical delineation of gold in rock chips and copper intersected with strong correlation to a Telfer style deposit.”

The explorer’s profile was thrust into the spotlight in September 2022 when former Fortescue Metals Group chief executive Elizabeth Gaines, current Fortescue deputy chair Mark Barnaba and former BHP iron ore president Jimmy Wilson announced they would be joining the Greatland board.

In addition, Greatland also won the backing of Wyloo Metals with a $120 million equity investment with the company becoming a major shareholder.

A $220 million syndicated debt facility comprising ANZ, HSBC and ING was also struck as part of the raft of announcements last year.

However a delay on a planned feasibility for the project meant Greatland has had to renegotiate with the banks on a new commitment letter as well as terms for a seven-year debt, until the feasibility study has been finalised.

Locking in the new arrangement means Greatland does not have to incur the commitment and other fees associated with the proposed debt.

"The Letter of Support demonstrates the strength of our relationships with ANZ, HSBC and ING and further enhances Greatland's financial flexibility for funding of the Havieron copper-gold project,” Mr Day said.

The Letter of Support and continued backing of high-quality institutions consolidates Greatland's position prior to finalisation of the Havieron Feasibility Study as the decline ramp approaches the top of the Havieron gold-copper orebody."